E-3.2-01: Conducting Prereferral Review (08/17/2016)

Owned by Kacey Olson
Nov 21, 2018
2 min read

© Fannie Mae Single Family Servicing Guide

The servicer must perform a prereferral review of the mortgage loan within 15 days prior to the date the servicer is required to refer the mortgage loan to foreclosure (see also E-3.1-02, Performing Due Diligence Prior to Considering Foreclosure (11/12/2014)). Before the review, the breach or acceleration letter and the Borrower Solicitation Package deadline must have expired without affirmative response from the borrower.

For all mortgage loans:

The prereferral review must ensure that all procedures relating to establishing QRPC as outlined in D2-2-01, Achieving Quality Right Party Contact with a Borrower (11/14/2018) D2-2-01, Achieving Quality Right Party Contact with a Borrower (11/14/2018)were followed and that:

  • an approved payment arrangement is not pending;
  • a complete BRP has not been received; or
  • if a complete BRP has been received, the servicer has determined that either the borrower is not eligible for a workout option or the servicer has extended an offer for a workout option and the borrower has not accepted the offer within the required time frame specified in the Evaluation Notice.

Note: The servicer must not delay referral to foreclosure if the time frame for the borrower to respond to an offer for a workout option has expired.

For mortgage loans secured by a principal residence:

During any prereferral review period or before the servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process that pertains to a mortgage loan secured by a principal residence, the servicer must not refer the mortgage loan to foreclosure under any of the following circumstances:

  • there is an approved payment arrangement for a workout option;
  • a complete BRP has been received and the servicer is within the 30-day time period for evaluating the complete BRP;
  • the servicer has extended an offer for a workout option, including a Trial Period Plan, and the borrower’s response time period has not expired;
  • the borrower is conditionally approved for monthly payment assistance under the federal Hardest Hit Fund program;
  • the borrower has accepted an offer for a workout option and is performing in accordance with its terms; or
  • the time period for the borrower to exercise any right of appeal as described inD2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence (05/10/2017) D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence (05/10/2017) has not expired, the servicer is evaluating the borrower’s appeal, or the time period following the servicer’s appeal decision for the borrower to accept any offer for a workout option has not expired.

See also E-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal Residence (08/17/2016) for additional information.